Author: roymorgansocial

As good as it gets for the Australian dollar?

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Original article by Jens Meyer
The Australian Financial Review – Page: 20 : 25-Jul-17

A speech by Reserve Bank of Australia governor Philip Lowe on 26 July is likely to be closely scrutinised after recent commentary on a neutral interest rate target prompted the Australian dollar to rally. The currency peaked at a two-year high in response, although it retreated after deputy governor Guy Debelle downplayed the discussions about neutral rates. Paul Dales of Capital Economics expects the dollar to come under downward pressure, citing factors such as the outlook for interest rates and the iron ore price.

CORPORATES
RESERVE BANK OF AUSTRALIA, CAPITAL ECONOMICS LIMITED, AXITRADER PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, OANDA AUSTRALIA PTY LTD

Atlas looks to build buffer before returning to debt markets

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Original article by Paul Garvey
The Australian – Page: 19 : 24-Jul-17

Atlas Iron MD Cliff Lawrenson says the iron ore miner will not repay its outstanding Term Loan B debt of $A103m until it has a working capital buffer of around $A50m. He adds that a revolving credit facility is among the options being considered to provide the company with more balance sheet flexibility. Lawrenson believes that capital markets will rate Atlas Iron more highly once its Term Loan B debt has been paid off.

CORPORATES
ATLAS IRON LIMITED – ASX AGO

Foreign apartment buyers to halve

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Original article by Michael Bleby
The Australian Financial Review – Page: 31 : 24-Jul-17

The number of new apartments funded by foreign investors in Australia is tipped to fall significantly over the period from 2016 to 2019, according to Master Builders Australia. It attributes the expected decline to federal and New South Wales government curbs on foreign property investors. The MBA also expects foreign investment in new standalone properties to decline, but by not as much as apartment investment. The MBA expects NSW to feel the biggest impact in terms of a decline in new foreign investor-funded apartments, but Tim Lawless of CoreLogic suggests that Victoria instead will be most affected.

CORPORATES
MASTER BUILDERS OF AUSTRALIA, CORELOGIC AUSTRALIA PTY LTD

Telcos refuse to guarantee speed

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Original article by Anthony Klan
The Australian – Page: 1 & 2 : 24-Jul-17

NBN Co is imposing high bandwidth charges on telcos, in order to provide the Federal Government with a sound return on the $A49 billion it has committed to the National Broadband Network project. The high charges mean telcos are not buying the required amount of bandwidth, resulting in very slow access times during high usage periods. As a result, telcos such as Telstra, Optus and TPG are refusing to promise that customers who sign for a specific NBN speed package will indeed be guaranteed to receive services at that speed.

CORPORATES
NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, TPG TELECOM LIMITED – ASX TPM, DODO AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY

Exporter warning over gas shortfall

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Original article by Joe Kelly
The Australian – Page: 6 : 24-Jul-17

Resources Minister Matt Canavan will advise LNG exporters on 24 July 2017 that he may trigger the Australian Domestic Gas Security Mechanism in 2018. Doing so would mean the Federal Government is not confident that there is enough gas to meet domestic needs, and it would take appropriate steps to ensure this does not happen. Fatih Birol, the head of the International Energy Agency, wants Australian states that have imposed restrictions on conventional and unconventional gas exploration to reconsider their stance.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, INTERNATIONAL ENERGY AGENCY, AUSTRALIAN LABOR PARTY

ASIC, ATO target ‘phoenix’ advisers

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Original article by Duncan Hughes
The Australian Financial Review – Page: 1 & 4 : 24-Jul-17

Australia loses around $A3 billion a year as a result of companies being reborn, otherwise known as phoenix activity. Losses occur in areas such as taxation, salaries and superannuation payments. A taskforce comprising bodies such as the Australian Taxation Office, the Australian Securities & Investments Commission and the Fair Work Ombudsman has been formed to try to combat the impact of phoenix activities, with advisers who try to encourage business owners to " rebirth" their company one of its main targets. The Black Economy Taskforce, which is investigating the cash economy, is also developing strategies to combat phoenix activities.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. FAIR WORK OMBUDSMAN, KPMG AUSTRALIA PTY LTD, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Pressure mounts on hedge funds over fees

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 24-Jul-17

Investors in hedge funds are seeking a better deal on fees, as well as more flexible fee structures, according to a survey by Credit Suisse. The survey, which encompassed upwards of 200 corporate investors, also found that just under 90 per cent of investors who had withdrawn monies from poorly performing hedge funds intended to reinvest in the sector, and that 57 per cent of hedge funds envisage at least a "moderate" increase in their allotment to quantitative strategies.

CORPORATES
CREDIT SUISSE AG

Housing supply ‘does not lower prices’

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 32 : 24-Jul-17

House price and new home approval figures for 2016 seem to bear out the view of Joe Flood that boosting housing supply does not lead to lower prices. New home commencements rose by 14,000, but house prices showed no sign of falling, particularly in Sydney and Melbourne. Flood, who works for affordable home supplier Community Housing, says governments may need to develop a revised version of the National Rental Affordability Scheme, while curbs on housing finance and tax changes could also help the situation.

CORPORATES
COMMUNITY HOUSING LIMITED, CURTIN UNIVERSITY OF TECHNOLOGY, UNIVERSITY OF NEW SOUTH WALES

Giants join juniors in the hunt for minerals

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 24-Jul-17

Newcrest Mining has established a joint venture with Encounter Resources to explore for gold in Western Australia. The alliance is part of a growing trend for major global miners to enter joint venture arrangements with smaller Australian explorers. Encounter Mining MD Will Robinson says it is a cost-effective way for large miners to undertake greenfields exploration programs. He adds that more big miners are starting to ramp up their exploration in the wake of cutbacks following the downturn in the resources sector.

CORPORATES
NEWCREST MINING LIMITED – ASX NCM, ENCOUNTER RESOURCES LIMITED – ASX ENR, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, RIO TINTO LIMITED – ASX RIO, ANGLOGOLD ASHANTI LIMITED – ASX AGG, ORINOCO GOLD LIMITED – ASX OGX

NAB CFO hails APRA decision

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Original article by James Frost
The Australian Financial Review – Page: 16 : 24-Jul-17

The Australian Prudential Regulation Authority has set a new capital target for the banking sector, with the four main banks expected to have a common equity tier-one capital ratio of 10.5 per cent or more by 1 January 2020. Gary Lennon, the National Australia Bank’s chief financial officer, says it is well placed to reach the target, as it had a CETI ratio of 10.1 per cent at the end of March 2017. Lennon is supportive of APRA’s target, saying it will help to boost investor confidence in the banking sector.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ